Capital Gains Tax Exemption

Viewing 10 posts - 1 through 10 (of 10 total)

PropertySeeker
Participant
@propertyseeker
Join Date: 2006
Post Count: 43
May 4, 2012 - 12:58 am
Hi all,
here is my situation:
I bought a house in Feb 2006 and only lived there for 8 months. I then rented it out all the way till now. So I have rented it out for slightly less than 6 years, now I want to sell.
Would I have to pay CGT?
can I still say it is my PPOR?
Thanks
PropertySeeker
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
May 4, 2012 - 10:55 am
You could possibly avoid CGT depending on the circumstances
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
djjk
Participant
@djjk
Join Date: 2010
Post Count: 87
May 7, 2012 - 10:03 pm
You should avoid cgt as long as you haven’t had another ppor during that time. If you have may need to look at apportioning for that time.
PropertySeeker
Participant
@propertyseeker
Join Date: 2006
Post Count: 43
May 10, 2012 - 5:34 am
Hi all,
Well I actually purchased another unit to live in while renting the house out. Does that mean that's my PPOR?
What exactly is considered a PPOR? Do I have to register somewhere?
Thanks
PropertySeeker
udas
Member
@udas
Join Date: 2012
Post Count: 4
May 12, 2012 - 8:37 am
Hi all,
Here is my situation:
I bought an unit in April 2008 and there was tenant living there for 6 months, so it was rented within that time frame.
After six month, I started living there till now. So, I have rented out that for only six months.I have already repaid 75% of the loan for this property.
Now I want to make that as an investment property and planning to buy a better house.
If I consider selling it to my wife to make that as an investment property for better tax benefit, will there be any stamp duty, it is in South Australia?
Would I have to pay CGT?
If so, How much?(Buying price was 175K, Property worth now is 205K)
Thanks.
PropertySeeker
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
May 12, 2012 - 2:10 pm
probably stamp duty and cgt
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
udas
Member
@udas
Join Date: 2012
Post Count: 4
May 13, 2012 - 1:09 am
If stamp duty is required I may not go for it.
Any idea how much cgt would be required approx, in this case?
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
May 13, 2012 - 1:48 am
Stamp duty would be market rates on the value of the property transferred
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
udas
Member
@udas
Join Date: 2012
Post Count: 4
May 13, 2012 - 7:17 am
Ah ok if stamp duty and CBT both are required, I guess, it will be better to leave it as it, and keep this as an investment property for now.
On that case, I will not get much tax benefit anyways from this investment property and rather will be taxed on the income generated by this property:-(. May be, this is still better now than paying stamp duty and CBT.
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
May 13, 2012 - 10:08 am
I am only gessing about the stamp duty, you would have to ask your lawyer or look at the duties act SA to much sure.
CGT may not be much if you only rented it out 6 months. It may not be anything depodning on the other costs and value.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au